Arizona Real Estate License Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

When both the buyer and seller sign the purchase contract, it results in an expressed contract. An expressed contract is one where the terms and intentions of both parties are clearly stated, either orally or in writing. In the context of real estate, a signed purchase contract explicitly outlines the agreement between the parties involved, detailing the rights and obligations they are committing to.

This type of contract is essential in real estate transactions because it provides a clear framework under which the buyer is obligated to purchase the property, and the seller is obligated to transfer the property to the buyer. The signed document serves as tangible evidence of the agreement and includes critical details such as the purchase price, property description, and any contingencies.

In contrast, other types of contracts mentioned in the question serve different purposes. A unilateral contract involves one party making a promise in exchange for an action from the other party, which is not applicable when both parties sign a contract. An implied contract arises from the actions or conduct of the parties rather than written or spoken words. Finally, a contract by estoppel is not a formal contract; it arises from the actions or statements of one party that leads another party to believe a contract exists, typically preventing that party from denying its validity.